Telecom Italia Offers EU7B for Vivendi’s GVT Unit

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Aug. 28 (Bloomberg) –- Bloomberg’s Caroline Hyde reports on Telecom Italia’s cash and stock bid for Vivendi’s Brazilian broadband unit. She speaks to Mark Barton, Anna Edwards and Manus Cranny on “Countdown.” (Source: Bloomberg)

Caroline, this is the battle over this brazilian asset that has been the key.

I know.

I try to tell.

Sell it off.

Telefonica tried to move it.

Is this enough?

7 billion euros,. we understand that later today, they're going to come back with a renewed bid with 8 million euros.

It really is -- you have got to get down to the nitty-gritty, because this isn't all in cash.

They're offering stakes in yourself, stakes and emerging companies.

What they been offering so far as a 20% stake in itself, selling its own shares to the french conglomerate.

Then also a stake in the combined brazilian unit.

Telefonica is offering about $5 billion worth in cash for the brazilian combined unit.

It really comes to this point of whether they want italia itself.

There is one thing you brought through time and time again -- why would they want to deal?

And the key word is disseminating content.

Limiting access to a myriad of platforms and italy.

According to people that, it is that exactly.

It sold sfr earlier this year.

Why do they want to have skin in the game when it comes to telecom?

You can expand your content into new and interesting areas.

Telefonica want it so much because the home of markets are shrinking.

They are not demanding revenues in terms of their mobile quite so much.

We can call on skype, we are not using our mobile way we used to.

In brazil, you've got gdp and 12% of the market on the internet, 9% of the market in terms of landline.

Less competition so they can look to expand, tapping into an emerging market.

They have gone from 7 billion euros, and all caps very murky -- how much of telecom italia will it end up having?

It's a big shareholder in telecom italia.

They don't like that.

Do they sell their stake?

What about the regulatory issues within brazil?

They may not let the deal go through.

That's what the problem is, do you want more consolidation?

Both of these options are for merging with the rival, but they want more competition, not less.

That will be a really interesting take.

How can they promise brazil more competition?

Telecom italia would take a stake, a 15% stake in tim.

24% cash.

Telefonica is a bit heavier in terms of cash.

We have got numbers coming out.

This text has been automatically generated. It may not be 100% accurate.

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